The Cannabis beverage market has witnessed significant growth over the past few years owing to the increasing legalization of cannabis for both medical and recreational purposes in various countries. Cannabis beverages offer advantages like precise dosing compared to smoking cannabis and provide an alternative experience to consumers. The market has seen a rise in the number of product offerings such as sodas, juices, alcoholic drinks, energy and wellness drinks with cannabis infusions. Cannabis-infused beverages are projected to open up an entirely new sector within the industry as consumers seek variety in their cannabis consumption experiences.
The Global Cannabis Beverage Market is estimated to be valued at US$ 630.64 Bn in 2024 and is expected to exhibit a CAGR of 8.2% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the Cannabis Beverage market are IBM Corporation, Microsoft Corporation, SAP SE, and Oracle Corporation. These players are focusing on new product launches and innovations in the beverage sector.
The Cannabis Beverage Market Demand is witnessing high growth in demand owing to increasing product awareness and legalization of cannabis in new regions. Cannabis infused drinks provide an alternative to popular drinks and are gaining traction among young consumers.
Technological advancements are helping players to launch new product formulations and flavors in the market. Companies are investing in R&D to develop precise dosing solutions and improve taste/texture of the beverages to attract more consumers.
Market Trends
One of the key trends witnessed in the Cannabis Beverage Market is the launch of new product types. Companies are innovating beyond sodas and juices to introduce various formats like ready-to-drink cocktails, energy drinks,relaxed teas and more.
There is also a rising demand for non-alcohol infused and zero-calorie cannabis drinks. Players are focusing on health-conscious consumers by offering natural ingredients and sugar-free beverages.
Market Opportunities
Increasing social acceptance of cannabis provides significant scope for mainstream beverage companies to enter the market. Partnerships between cannabis and popular drink brands are expected to boost the category growth.
International market expansion into newly legalized regions like some European countries presents lucrative opportunities for Cannabis Beverage companies. The market is yet to capture its full potential and offers opportunities with ongoing legalization.
Cannabis Beverage Market Impact of Covid-19
The COVID-19 pandemic has significantly impacted the global Cannabis Beverage market growth. In the initial stages of the pandemic, stringent lockdowns imposed by various governments worldwide led to closure of manufacturing facilities and supply chain disruptions. This adversely affected the production volumes of cannabis beverages. With restrictions on social gatherings and closure of bars & restaurants, consumption patterns also changed drastically. However, with people spending more time at home, demand for cannabis beverages saw an uptick in the later stages of pandemic from individuals consuming them for recreational purposes. Online sales channel emerged as an important avenue to drive sales during lockdowns.
As restrictions are now being gradually lifted in most parts of the world, the Cannabis Beverage Market Analysis is recovering. Manufacturers are scaling up production and launching new products to cater to the changing consumer preferences. For instance, they are introducing wellness-focused cannabis beverages with emphasized health benefits. Rising acceptance of cannabis for medical use is also a major factor providing impetus to market growth post COVID-19. While uncertainties continue due to the emerging variants, the long-term outlook for the market remains positive with steady legalization of cannabis in new geographies.
In terms of geography, North America accounted for the largest share of the global Cannabis Beverage market in terms of value pred-COVID. This was majorly attributed to the early legalization of cannabis for medical and adult use in countries like the US and Canada. The Cannabis Beverage market was witnessing strong growth in this region led by product innovation and increasing consumption. Moving forward, Asia Pacific region is expected to emerge as the fastest growing regional market owing to rising adoption of cannabis extracts in wellness products and progressive legislation in countries like China, Australia, Japan.
The Cannabis Beverage Market saw significant geographical concentration of sales in North American region in terms of value prior to COVID-19. This was led by large consumer base and established cannabis industry in the United States and Canada. Post COVID-19 recovery, Asia Pacific region is anticipated to exhibit fastest growth rate for Cannabis Beverage market over the forecast period. This rapid growth can be attributed to increasing acceptance of cannabis-infused beverages for wellness, relaxation and medical purposes among consumers in emerging nations like China, India and South Korea coupled with supportive regulatory reforms.
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